If the multiplier is 5, the MPC is
A. 0.1
B. 0.5
C. 0.2
D. 0.8
Answer: D. 0.8
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A decrease in the demand for American-made goods will
A) increase the supply of dollars in the foreign exchange market. B) decrease the supply of dollars in the foreign exchange market. C) decrease the demand for dollars in the foreign exchange market. D) increase the demand for dollars in the foreign exchange market.
In an economic model, an exogenous variable is
A) a stand-in for more complicated variables. B) determined by the model itself. C) determined outside the model. D) a variable that has no effect on the workings of the model.
An asset that can easily be exchanged for goods and services is referred to as:
a. an intangible asset. b. a productive resource. c. a liquid asset. d. a fixed asset. e. a scarce resource.
Price controls usually enhance efficiency in the allocation of resources
a. True b. False Indicate whether the statement is true or false